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Published Annual Report on performed audits and activities of the SAI of Montenegro for period October 2016 – October 2017

Podgorica, 30th October 2017 – The State Audit Institution of Montenegro submits the Annual Report on Performed Audits and Activities of the State audit institution of Montenegro for the period of October 2016 – October 2017 to the Parliament of Montenegro according to the Constitution of Montenegro and Law on the State audit institution of Montenegro.

The Annual Report of the SAI of Montenegro represents an integrated and summarized overview of all the completed activities within the framework of SAI’s mandate in the reporting period October 2016 ‐ October 2017, primarily those aimed at executing the Annual Audit Plan.

The audit of the Final Statement of Accounts of the State Budget of Montenegro for 2016 has included the verification of computational accuracy, receipts and expenditures, capital budget and financing transactions. The audit has rendered total of 16 recommendations aimed at improving the operations of budget users and strengthening fiscal discipline.

The Annual Report on performed audits and activities of the SAI of Montenegro for period October 2016 – October 2017 also contains the Report on Assessment of Application of Fiscal Responsibility Criteria for 2016, which the State audit institution is obliged to submit to the Parliament of Montenegro in line with Article 26 of the Law on Budget and Fiscal Responsibility.

The Annual Report on performed audits and activities of the SAI of Montenegro for period October 2016 – October 2017 provides excerpts from 41 performed audits representing the most significant findings, recommendations and measures recommended to eliminate irregularities in business practices of audited entities encompassed by the reporting period.

The SAI of Montenegro, in the reporting period, conducted 14 individual financial audits and regularity audits. The completed individual financial and regularity audits rendered 270 recommendations and 25 opinions (10 unqualified, 11 qualified and 4 adverse).

In addition to the completed individual financial and regularity audits, the SAI of Montenegro, in the reporting period, conducted four performance audits. Four audit opinions and 100 recommendations were given upon the completion of four performance audits.

In the reporting period, the State audit institution has started to conduct the audits of information system and it performed the audit of the information system of the Health insurance fund of Montenegro and gave 15 recommendations.

The SAI of Montenegro, in the reporting period, conducted audits of the consolidated annual financial statements of 13 political parties for 2016. The audits resulted in 69 audit recommendations and 26 audit opinions (16 unqualified, 9 qualified and 1 adverse). In the period October 2016 – October 2017, the SAI conducted the audits of the consolidated annual financial statements of the political parties for 2015,  which were not included in the previous report of the State Audit Institution and which entailed 9 parties. The audits resulted in 73 recommendations and 18 opinions (6 unqualified, 7 qualified, 3 adverse and 2 disclaimer of opinions).

Till the end of 2017, the SAI will conduct the audits of the following audited entities: Ministry of health; Group of citizens Civic initiative; Liberal party; Socialist People's Party; Democratic Serb Party; Democratic Union Party; Workers Party; Democratic party; Democratic union of Albanians; New Democratic Force FORCA; Democratic Alliance in Montenegro; Group of voters Civic Action; NGO Perspective - ANA E MALIT; Montenegrin democratic union - SCDU); Movement for Pljevlja; NGO "IZBOR" Herceg Novi; Group of citizens „Novska lista"; Municipality of Budva; Distribution of funds of the Equalization fund.

Till the end of 2017, the SAI will conduct three performance audits: Management of the construction and reconstruction projects of the education and science buildings;  Efficiency of collecting tax debts of taxpayers in bankruptcy and liquidation;  Efficiency of calculation and collection of revenues from the use of forests.

The State Audit Institution of Montenegro has continued the realization of activities defined by the negotiating Chapter 32 “Financial Control”, which aim to improve the quality of the audit procedure and to comply it with applicable International Standards of Supreme Audit Institutions (ISSAI) and with practices of the European Union Member States. The State audit institution of Montenegro, in the reporting period, has devoted special attention to further strengthening of the auditing capacities through additional hiring of audit staff, as well as to further development of performance audits through conducting a larger number of audits in relation to the previous reporting period.

The State Audit Institution of Montenegro conducted two parallel performance audits in order to improve the performance audit and to acquire new methodologies - "Energy efficiency in the public sector institutions" with the State Audit Office of the Republic of Croatia and "Efficiency of public procurement" with seven countries of the region, the National Audit Office of Sweden and the European Court of Auditors.

The State Audit Institution of Montenegro has continued to cooperate with the Parliament, the Government of Montenegro and other authorities, non-governmental sector, as well as with the Supreme Audit Institutions at the international and regional level and with international organizations.

The Annual Report on performed audits and activities of the SAI of Montenegro for period October 2016 – October 2017 has been published at the official web site of the State audit institution of Montenegro.

Annual Report on Performed Audits and Activities of the State Audit Institution of Montenegro for period October 2016 - October 2017 (mne)